The National Bank for Economic and Social Development (BNDES) will make a public call for the acquisition of up to R$ 10 million in carbon credits.

The priority will be for reforestation titles, energy and the so-called Redd+ (reduction of emissions from deforestation and forest degradation).

The bank's objective is to stimulate the development of a voluntary market for this type of securities in Brazil and, thus, contribute to the reduction of greenhouse gas emissions.

Carbon credit is an instrument that allows to remunerate initiatives to decarbonize the economy, such as forest restoration projects and the use of clean energy among other measures to reduce greenhouse gas emissions.

Polluting gases

These credits are transformed into securities that can be sold to other agents that emit more polluting gases than allowed. Volunteer agents can also purchase credits to gain access to green funding sources or by another strategic decision.

According to BNDES, the estimate is that the voluntary market needs to grow more than 15 times by 2030 to meet the goals of the Paris Agreement, which aims to achieve the balance between emission and removal of greenhouse gases by the year 2050.

Source: Canal Rural